This can be easily fixed by assigning the controller to a different player on the control mappings screen. Also, check this out: https://streetsofrogue.tumblr.com/troubleshooting
Madguy
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Actually, the game doesn't even technically have Steam DRM. You can copy-paste the files from the Steam directory somewhere else if you want to share it that badly. The game will still work, aside from multiplayer.
The primary advantage of Steam is that I update the game frequently. You won't get those updates automatically if you don't use it. Frankly, I think this trumps most intangible freedoms you might have with a completely Steam-free version.
I made some changes to how it detects gamepads in one of the more recent betas. Try this and let me know if it works any better: http://streetsofrogue.com/sordownloadsbeta.html